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A. Roy Chowdhury

An eye on each one.

Shamik Paul

How do oil companies prevent commercial use of LPG cylinders meant for homes?

Technology is ready to step in with a solution, says NXP Semiconductors India Private Ltd.

The company has developed a solution based on RFID (Radio Frequency Identification) technology that can help the oil companies keep a tab on the cylinders.

NXP will provide the RFID chip, and partner with companies such as Honeywell or IBM who will create the complete solution, says Ashok Chandak, Director, NXP Semiconductors India.

Chandak says that while NXP has done a pilot project with Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd is in the tendering stage. Some of the major gas companies have invited bids for the project, and NXP is amongst the companies that have submitted bids.

The solution developed by NXP includes an RFID tag that would be attached to a cylinder, which would have its identification number.

The cylinder bottling plants would have a tag-reader that can read the tag number of the cylinders. This reader will send this information to a central system, where the information will be stored.

On the other hand, the consumers would have a smart card that would contain the consumer’s account details and identification history.

The cylinder vendors would have a hand-held device that would read the cylinder identification number and write it in the consumer’s smart card. When the vendor returns to his office, he would enter the details in the system.

The RFID chip has been designed and developed in Austria, but the applications part has been made in India, says Chandak. NXP is also exchanging know-how with Indian companies on how to make the reader.

“This solution will help the companies to know who is using this cylinder. It will plug this loophole to some extent,” says Chandak.

However, the solution will work only if it is implemented throughout the country.

LPG is subsidised for domestic use, while commercial users have to pay the entire amount.

Because of the pilferage, the oil companies as well as the government are losing revenue, points out Chandak.

He says the implementation of the solution would take Rs 50 to Rs 60 per cylinder, but it would vary depending on to what extent the companies are scaling it.

Chandak says the return on investments (ROI) would come only when the solution has been implemented across the supply chain.

ROI can be done within a year if it is implemented across the country, he adds.

shamik@thehindu.co.in

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